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Fredericksburg was a prominent port during the colonial era, and during the Civil War, the town was the site of the First and Second Battle of Fredericksburg, preserved as the Fredericksburg and Spotsylvania National Military Park. Tourism plays a major role in the economy- 1.5 million people visit Fredericksburg annually, including the battlefield park, the downtown visitor center, museums and historic sites.

Fredericksburg is home to several large shopping centers including Central Park (the second-largest mall on the East Coast as of 2004) and Spotsylvania Towne Centre adjacent to the city line. Employers include the University of Mary Washington, Mary Washington Healthcare, and GEICO. There has been much heated debate about whether or not Fredericksburg culturally belongs to the rest of Northern Virginia.